Team from Independent Agency investigates, finds violation of Human Rights

The controversial Shree Maheshwar Hydro Electric Project received a big
blow following the withdrawal of two multinational companies, Bayernwerk
and VEW Energie. The project was to have 76% foreign investment of which
these two companies were to invest 49%. Earlier an American MNC PaCgen
had refused to invest in the Maheshwar project.

As part of the Narmada Valley Development Project, the Maheshwar Hydel
Power Project was to be made on the Narmada river at Jalud village in
Khargone district. If the 400 MW project is constructed it will
submerge 61 prosperous villages in Nimad. Earlier this project was
awarded to Madhya Pradesh Electricity Board but due to the paucity of
funds to built such a project, it was later awarded to a private textile
company S.Kumar's. S.Kumar's had then involved foreign companies in the
project. Narmada Bachao Andolan (NBA) has been fiercely resisting the
project over the last two years because of the absence of a
rehabilitation plan for the affected people and other issues. Today's
refusal by the foreign companies to invest in the project validates the
issues raised by NBA regarding this project.

According to the press release by a German People's organisation,
Urgewald, Mr. Joachine Adams, Chairman of the VEW Board has announced,
"VEW is now not a part of Maheshwar project and nor does it wish to
become a part of it". A representative from Bayernwerk stated, "Our
agreement with the Maheshwar Hydel Power Corporation is over. Only if
the project authorities plans to give land for land and also fulfills
all other conditions laid down by the Narmada Award and state
rehabilitation policy, can we consider a fresh involvement". It is to be
noted that the Madhya Pradesh government has not been able to implement
the provision of land for land according to the rehabilitation policy
for the displaced in any of the dams under the Narmada Project, leaving
the oustees and displaced with no option but to oppose and agitate
against the destructive large dams.

Seimens, another German company was to invest 17% in the project on the
condition that the turbines necessary to the project and generators
would be purchased from them. This investment was to have the approval
of HypovereinsBank and depends upon the export guarantee to be given by
the German government. Since the new government in Germany has decided
to give special importance to social, environmental and other issues
before giving this kind of guarantee, the involvement of Seimens also
seems doubtful.

Thus the German MNCs have decided to distance themselves from the
Maheshwar project as they see the seriousness of rehabilitation and
resettlement among other issues related to the Maheshwar Project. NBA
welcomes the people's friendly decision by the foreign companies. The
Andolan believes that it is because of the fierce struggle put up by the
Maheshwar project that the truth about the project is out and these
companies have had to withdraw from the project. This is a major
victory for the Andolan. In this context the Andolan demands that the
project promoter company S.Kumar's should also understand the realities
concerning the project and withdraw from it. The state government
should implement alternative means of generating power as recommended by
the task force constituted for the review of the Narmada Projects so as
to put a stop to the destruction in the valley.

The report of Urgewald, a well known Environment and Human Rights
Organisation in Germany, based on its visit to the Maheshwar Project
affected area, has found serious violations of human rights. According
to Heffa Schuking, leader Urgewald, the organisation visited 10
sites/villages in the affected area and had talks and interviews the
villagers. She had long discussions with S.Kumar's and members of MPEB.
She states, "What we found on the ground was a total lack of credible
resettlement planning and a complete lack of land available for
rehabilitation. This is indeed alarming if one considers that the
project has been in the pipeline since 1978 and will displace over
20,000 people".

One of the most sobering incidence related in the report is the
investigation teams visit to the resettlement site for Jalud, the first
village behind the dam. The report describes how the resettlement site
was established on lands, that already belonged to a community of
Harijans and Adivasis. In spite of the fact that these community had
land titles, their lands were illegally bulldozed and confiscated by the
project authorities. "The project is thus creating a spiral of
displacement far beyond the actual submergence zone". The report also
raises the question of the economic viability of the Maheshwar project.
Referring to the prosperity of the submergence zone, the investigation
team concludes that a cost-benefit analysis based on the true costs of
replacing the lands and livelihoods of these communities, it is our
final conclusion that the project could no longer be considered
economically viable. Ms.Schuking, declaring that the project is clearly
unacceptable hopes that the government of Madhya Pradesh will consider
it anew.

Meanwhile at the instructions of the Chief Minister, his Secretary Shri.
Gopalkrishnan, and the Bhopal District Collector, Shri.Iqbal Singh Bais
visited the venue of the dharna this afternoon. They informed that
tomorrow afternoon when Baba Amte, the father figure of the Andolan
comes to Bhopal, the Chief Minister would discuss the issues of the
Narmada Project with him and others of the Andolan at the venue of the
dharna.

On the site of Dharna site, the situation is becoming tense on the
ninth day of the hunger strike, for the health of all the 7 fasters are
deteriorating steadily leaving great concern. Despite this the
enthusiasm of all the hunger strikers and others -farmers, adivasis- in
the dharna site is going strong and busy with speeches, bhajans, songs,
etc.